Magellan Midstream and TransMontaigne mull refined products pipeline

Published 6:58 am, Monday, April 11, 2016

HOUSTON —Two midstream companies are looking into developing a South Texas refined products pipeline that will carry fuel to Mexico.

Tulsa-based Magellan Midstream L.P. and Denver’s TransMontaigne Partners L.P. said in a press release they are jointly assessing a 150-mile, 16-inch diameter pipeline capable of moving 150,000 barrels per day of refined products.

The proposed pipeline would be able to move gasoline, diesel fuel, propane and condensate from Magellan’s Corpus Christi terminal to TransMontaigne’s Brownsville, Texas terminal. From there, the fuel could travel to Mexico via truck, rail or other pipeline connections, the companies said in a press release.

The pipeline could be operational by the end of 2018. The companies didn’t disclose a cost or the terms on which they would build and potentially operate the pipeline.